Because the vast majority of domestic participants do not understand the foreign exchange market and foreign exchange transactions, blind participation has led to large-scale and large-scale losses, including a large number of state-owned enterprises.
1In August, 1994, the CSRC and other four ministries jointly issued a document to completely ban forex futures trading (deposit). Since then, the management department has always held a negative attitude and severely cracked down on domestic foreign exchange margin trading.
At the end of 1993, the People's Bank of China began to allow domestic banks to conduct firm foreign exchange trading for individuals. By 1999, with the standardization of the stock market, the profit margin of buying and selling stocks has been greatly reduced, and some investors have begun to enter the foreign exchange market. Domestic foreign exchange firm trading has gradually become a new investment method and entered a stage of rapid development. According to CCTV, foreign exchange trading has become the largest investment market except stocks.
Compared with the domestic stock market, the foreign exchange market is much more standardized and mature. The daily trading volume of foreign exchange market is about 1000 times that of domestic stock market. Therefore, although the trading rules are not completely in line with international practice, the personal firm foreign exchange trading business provided by domestic banks has attracted more and more participants.
Generally speaking, the vast majority of foreign exchange investors at home and abroad participate in the firm trading of domestic banks, and the margin trading will take some time for domestic investors because China is not yet open and the country's foreign exchange control policy.